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Chocolate prices are rising; here is why? - Chu Ngọc Trà Vy - 9IG2E0
The article “Chocolate lovers, brace yourselves: Prices are rising, but not forever” by Jenni Reid (CNBC, August 22, 2025) discusses the recent surge in chocolate prices caused by harsh weather, pest outbreaks, and resource shortages in Africa, where 75% of the world’s cocoa is produced. Rising production costs and global inflation have further driven up prices, while the supply of cocoa remains inelastic due to limited suitable land and few producing countries like the Ivory Coast and Ghana.
Despite high prices, demand for chocolate stays strong, showing price inelasticity on the demand side as well. However, prices might decline next year as cocoa production improves with better weather and maturing crops, though UK retail inflation and US trade policies could keep pressure on prices.
Government intervention is not essential since chocolate is not a necessity, but producer countries might subsidise or support the industry if prices hurt competitiveness. The article suggests that investment and technological improvements would be a more effective long-term solution to increase cocoa supply and stabilise prices.
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Chocolate prices are rising; here is why? - Chu Ngọc Trà Vy - 9IG2E0
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